Additional Case 13.2 Starline Is a Small Children's Clothing Manufacturer and Retailer That

Multiple Choice

Additional Case 13.2
Starline is a small children's clothing manufacturer and retailer that has seen rapid growth in the last twelve months and a significant increase in employees. At a meeting of managers, a number of issues are raised.
One manager suggests establishing an EAP because of the increase in troubled employees at the firm. However, other managers state that such programs are costly and would not provide Starline with significant benefits.
Another manager states that Starline needs to develop an employee handbook to address issues related to the growing staff. Some managers express concern about the potential legal issues surrounding the use of an employee handbook.
Numerous managers state that there has been a noticeable decrease in productivity since every office worker was provided Internet access along with e-mail accounts. Managers discuss methods for increasing productivity and preventing misuse of the system.
One manager suggests that the company perform employee attitude surveys in order to help monitor the state of employee relations and make hiring and firing decisions during the next hiring cycle. This manager proposes that a third party perform the surveys and that employees not be told the purpose of the survey.
-Refer to Additional Case 13.2.Which of the following is the most appropriate response to concerns about an employee handbook?

A) Starline should not create a handbook because they are irrelevant given modern technology.
B) The HR department at Starline should update the handbook at least once or twice a year to protect the firm legally.
C) Starline employees should sign the handbook acknowledging that the document contains policies but is not a contract.
D) Given that Starline is a small company, a handbook is unnecessary because policies can be conveyed verbally.